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There are two main things that can significantly impact your cash value: carrier selection and policy design.

Choose The Right Carrier: The best whole life insurance carriers are mutual companies with strong dividend histories, competitive loan provisions, and favorable policy structures. Some of the best dividend-paying whole life insurance companies are Penn Mutual, Mass Mutual, Lafayette Life, Guardian Life, OneAmerica, Northwestern Mutual, New York Life, and Ameritas.

Policy Design: To maximize the cash value of your policy, it needs to be structured correctly. How?

• Minimize your base premium
• Add a term insurance rider to prevent a MEC
• Maximize the Paid Up Additions (PUA) rider

Yes. A whole life policy that is structured properly allows your cash value to grow tax free under IRS code 7702. Also, you can access it tax free. However, certain mistakes can trigger taxation.

What to avoid:

• Modified Endowment Contract (MEC): If your policy becomes a MEC, you lose the tax benefits. It's similar to a 401(k) or traditional IRA. The cash value will grow tax-deferred but withdrawals & loans may be subject to income tax + a 10% penalty if you're under the age of 59½. To prevent this, we make sure contributions stay below the policy's MEC limit.
• Cashing Out a Policy: Any gains are taxable as income if a policy is surrendered or cashed out. Also, if too much is loaned against the policy and it lapses, taxes will be due on the gains and the unpaid interest.

There isn't a "one size fits all" answer. Every policy is designed specifically to your exact situation. A good rule of thumb, take whatever your age is and add a 0. That is the "minimum" you should be funding each month.

Example: You are 45 years old. Your minimum monthly contribution should be $450. Factors such as age, gender, health rating affect contribution levels as well.

With a properly structured whole life policy using paid-up additions, typically you can access ~60-80% of your first year premium available in cash value within 30 days.

No. Techincally you do not have to pay back policy loans. There is not a required repayment schedule. You can pay back loans on your own schedule or decide not to. Any outstanding loan balance will be deducted from your death benefit, reducing the amount of money that would go to your beneficiaries. Most people repay the loans. The biggest thing to keep in mind, is that YOU are in control. You get to decide if, how and when you'll repay.